Jobs At Risk At Retailer Bank

Jobs at fashion chain Bank have been put at risk after the loss-making business went into administration. Bank has 13 shops in Scotland among 84 in the UK and was part of JD Sports Fashion until November.

It employs 1,500 people across the UK and Deloitte was appointed as administrator today after a review of the business determined that a solvent turnaround would not be possible.

All stores are open as normal and no redundancies have been made while the administrator considers potential interest in the business from several parties.

Bank has shops in Glasgow, Edinburgh, Dundee, Inverness, Ayr, Livingston, Clydebank, East Kilbride and Falkirk.

Bill Dawson, a partner in Deloitte's restructuring services practice, said: "Bank has struggled in a highly competitive segment of the retail industry and has been loss-making for a number of years."

He added that additional sale discounts will be implemented later this week. Mr Dawson said: ''The company has already been approached by several parties who have expressed an interest in the business and the administrators are trading as a going concern with a view to progressing these options and seeking further interested parties for some or all of the business."

Bank has been offering discounts of up to 70% as it attempts to attract shoppers in the face of fierce competition.

It was founded by former footballer Andy Scott in 1994 and largely sells branded fashion items aimed at the youth market.

JD bought the chain from private equity owners Phoenix Equity Partners and management for £18.5 million in 2007. In November it disposed of the business to HMV owner Hilco, a retail turnaround business, under terms which were not disclosed. JD's fashion division, which includes the more successful Scotts brand, recently slumped to a half-year loss of £8.2 million despite continued efforts to revive Bank, including through the appointment of a new management team. The administration of Bank comes just after 143 Scottish jobs were lost in the collapse of parcel courier firm City Link. In total, 2,356 jobs were lost after a bid to buy the delivery company failed.